The cryptocurrency market has seen a significant shift in Dogecoin ownership in recent months, with large holders, known as ‘whales’, decreasing their control over the circulating supply. This change indicates a move towards greater decentralization within the Dogecoin ecosystem.
A report by the prominent blockchain data company, IntoTheBlock, highlights this shift. Data shows that the percentage of Dogecoin held by wallets with more than 0.1% of the total supply has decreased from 45.3% to 41.3% in the past year. This decline demonstrates a gradual transfer of Dogecoin to retail investors, resulting in a more stable and resilient asset that is less susceptible to market manipulation.
As Dogecoin ownership diversifies among retail and mid-range investors, the dynamics of this meme coin are evolving. Previously, whales had the ability to influence markets significantly through large buy or sell orders. However, with a broader ownership base, Dogecoin’s market dynamics are becoming less reliant on a few individuals.
The trend of redistribution reflects a turbulent period for Dogecoin and the broader crypto market. The price of Dogecoin has dropped by nearly 10% in the last 24 hours and around 12.5% over the past week. Despite trading at approximately $0.211, Dogecoin is struggling to maintain a market capitalization above $18 billion.
While the redistribution of holdings may reduce price manipulation by whales, it also poses a risk of increased volatility from retail investors. The report from IntoTheBlock suggests that this shift in ownership could reinvigorate community support for Dogecoin, potentially driving its value as a consumer coin in the future.
Furthermore, the gradual opening of ownership could lead to stronger and more engaged communities, promoting stability and growth for Dogecoin in the long term.